Homebuilders grew more confident in June with buyers taking advantage of low interest rates and affordable prices, the National Association of Home Builders said Monday.
The index component measuring current sales conditions grew two points to a score of 32 in June, its highest level since April of 2007.
Meanwhile, the association's index measuring builder confidence reached its highest level in four years during the month of June.
The NAHB/Wells Fargo Housing Market Index, which measures the confidence of homebuilders, hit an index score of 29, up a whole point from May's revised figure. Compared to May's original index score, June's score remained virtually unchanged from the previous month.
"This month’s modest uptick in builder confidence comes on the heels of a four-point gain in May and is reflective of the continued, gradual improvement we are seeing in many individual housing markets as more buyers decide to take advantage of today’s low prices and interest rates," said Barry Rutenberg, chairman of NAHB.
NAHB chief economist David Crowe added, "While the June HMI is in keeping with our forecast for gradually improving single-family home sales this year, recent economic reports that have shown some weakening in the pace of recovery likely factored into the marginal gain."
Analysts with Econoday commenting on the report added, "Current sales of new homes are at their highest level of the recovery, according to the single-family sales component from the June home builders' report."